The manager of the Carpet City outlet needs to make an accurate forecast of the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of Carpet Citys many competitors. The manager has collected the following demand data for the past 8 months:

Demand for Soft Shag .. Month Carpet (1,000 yd.)

1 ............... 8

2 ............... 12

3 ............... 7

4 ............... 9

5 ............... 15

6 ............... 11

7 ............... 10

8 ............... 12

a. Compute a 3-month moving average forecast for months 4 through 9.

b. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of .55, .33, and .12 to the months in sequence, starting with the most recent month.

ii. compute the exponentially smoothed for cast (a=.20) for the given data.

cimpute am adjusted exponentially smoothed forecast